General Terms

Question 1

Collateral

Answer 1

Property subject to the security interest

Question 2

Consumer Goods

Answer 2

Goods that are bought primarily for personal, family, or household purposed

Question 3

Inventory

Answer 3

Anything, other than farm products, being held for sale or lease, raw materials, work in progress, or materials used or consumed in a business

Question 4

Equipment

Answer 4

Anything that is not consumer goods, inventory, or farm products

Note: think things that last a long time

Question 5

Accounts

Answer 5

The right to payment for property sold, leased, or services rendered

Question 6

Leases

Answer 6

Covered under Article 9 when the transaction, although in the form of a lease, is in substance a secured transaction

Question 7

Goods

Answer 7

Anything that is moveable at the time that a security interest attaches

Question 8

Deposit Account

Answer 8

Includes a savings, passbook, time, or demand maintained with a bank

Question 9

When is a security interest created in a lease?

Answer 9

When:

1. The lease payments must be made for the full term of the lease
2. Aren’t subject to termination; and
3. The lessee has an option to become the owner of the goods for a small amount of consideration at the conclusion of the lease agreement